The IMF has urged Kenya to maintain a balance between acquiring loans and implementing solid economic policies to ensure financial stability. Haimanot Teferra confirmed a new loan request was received and emphasized the need for enhanced governance surrounding public debt management. Kenya’s current credit status was discussed, indicating concerns about exceeding debt thresholds, with an emphasis on improving transparency and oversight to attract development partners.
The International Monetary Fund (IMF) has highlighted the necessity for Kenya to balance its loan acquisition with effective economic policies. During a recent meeting, Haimanot Teferra, Chief of the IMF African Department, acknowledged receiving a new loan request from the Kenyan government. She stated the IMF’s commitment to support Kenya’s medium-term growth through its various funding programs, including the Extended Fund Facility and Rapid Credit Facility.
Teferra emphasized that while the IMF does not negotiate on behalf of member countries, the request for a new program has been noted. It is essential for Kenya to establish robust governance and oversight for its public debt. She indicated that this involves setting appropriate debt thresholds and making necessary amendments to foster credibility and trust among development partners.
The discussions at Parliament, led by Wajir East MP Aden Daud, focused on the significant issue of Kenya’s credit status. Aden pointed out that Kenya’s public debt has exceeded the limits outlined in the Public Finance Management framework, stressing the risks associated with increased expenditure without adequate oversight. He committed to working with parliamentary committees to improve legislative oversight and address any deviations from established program goals.
The IMF representatives reiterated the importance of coupling debt acquisition with prudent economic management. They noted that Kenya’s capacity to fulfill its financial obligations is crucial for appealing to development partners. Continued financial support hinges on reforms in governance and transparency, essential for existing and forthcoming aid programs.
In conclusion, the IMF has underscored the critical need for Kenya to strategically manage its loan acquisitions while implementing sound economic policies. The ongoing discussions at the parliamentary level reflect a growing recognition of the importance of fiscal oversight. Strengthening governance and transparency alongside managing public debt will be vital in ensuring Kenya’s financial stability and attracting future support from development partners.
Original Source: eastleighvoice.co.ke
